The details come following recent speculation surrounding the deal, which had been valued at around £90m in a report by Bernstein Research. The deal is expected to close in Q3 2013.
Newton’s private client business has around 3000 UK and international high net worth and ultra high net worth clients, as well as a number of charity clients. All directly employed Newton employees will transfer to Standard Life.
The transaction is expected to increase Standard Life Wealth’s discretionary assets more than threefold, to circa £4.6bn, and fuel its onshore and offshore strategy.
Newton’s business is now focused on managing £28.9bn of institutional assets, £15.7bn of assets for pooled investment funds and £4.3bn of charity assets. Newton will continue to offer solutions to retail investors as an investment manager to BNY Mellon operated funds, with star managers such as Jason Pidcock, Ian Stewart and James Harries.
Helena Morrissey, chief executive officer at Newton, said: “The decision to sell the private client business was made after much thought and with the long-term future interests of all clients and staff at the forefront of considerations.
"Newton’s overall business has evolved over the past several years to the point where private clients now make up just a small portion of our total assets under management. We believe that the interests of private client investors, including the delivery of the highest standards of client service will be better served in future by a business where this area is a core element of the overall company strategy.”
